Can a Creditor Sue Me for Unsecured Debt
Posted: March 16th, 2010 | Author: admin | Filed under: Debt Management | No Comments »In times of economic uncertainty and major employment and mortgage crisis issues many people pay greater attention to their credit situation as well as their budgetary needs. This is actually a good policy regardless of the overall social economic climate, but the fact remains, many people only pay close attention to their finances when major crisis phases hit. This country has certainly experienced troubling economic times in recent years.
Not only do people tend to pay greater attention to economic factors during recessions and or depressions, but for many people this is due to great changes in their own circumstances. Unfortunately, this can mean that an individual has fallen behind on specific payments, and credit cards are frequently the first to take a hit in regular payments. And once a person gets behind on any payment system, it is difficult to recover when the circumstances that caused the default remain constant. This leaves many people to wonder what their options are and how bad things can ultimately get.
One of the questions on many people’s minds when they find themselves in circumstances of large unpaid debt is if they can and are likely to be sued. And the answer to that falls into two parts, just as the question did. Simply put, yes it is possible to be sued for unpaid debts, though the other part of the answer is that you are probably unlikely to be sued by your debtors. This is because it is expensive for them and the outcome remains uncertain. They and you are better off working to find a mutually agreeable solution. However, you do need to be careful with what you sign and commit to. Depending on the amount and type of debt that you have it might be much better for you to seek the advice of a credit counselor and in worse case scenarios, you may want to speak with a lawyer. There is also the difference between secured and unsecured debt to consider. Unsecured debt has nothing to back it up if you can’t make the payments and is more likely to cause payment demands and credit damage.